But for some companies, it could put them in a squeeze.
"Higher wages is positive overall for the U.S. economy and positive for consumer spending," wrote Tom Lee of Fundstrat in a note to clients Friday. "However, sectors and industries with a high labor component are going to have less incremental benefit. To measure this, we looked at 'employees per $10 million in sales' for the 10 economic sectors."
The squeeze on profit margins is going to be especially acute, according to Lee, on consumer discretionary companies such as hotels, clothing retailers and restaurants especially as retail sales decline.
"Consumer Discretionary is the most labor intensive sector, employing 36 workers for each $10 million in sales, or 52% higher than the Russell 1000 overall," said Lee. "Think of it this way, Consumer Discretionary is 17% of the $12.7 trillion in sales but is 26% of the 30 million workers employed."
In a note to clients on Friday, Lee identified 15 stocks that have low labor exposure and good growth potential. We've compiled his picks, along with the stock price upside potential, the employees per $10 million in revenue, and estimated earnings per share growth for 2016.
Check out all of the suggestions below.